The best way to go when buying a business is to buy one that has already been established rather than starting from ground zero. Why you might ask? Well in the first place you already have an established client base, the business of hiring employees has already been done, and if you have a brick and mortar company you will not have to negotiate a lease.
Key Checks You will, however, have to check the accounting books to see what money is coming in, going out, if there is any longstanding hidden debt that you might be inheriting, check all the equipment you might be getting to see if it is functional, and do a little background check on the employees to see if they are legal and nothing criminal is going on in their lives.
Employee contracts, client contracts, past lawsuits that might affect you, and who may owe an outstanding debt to the company you are planning to buy. Doing your due diligence will not only help you see how the business ticks but will also draw your attention to possible problems that may occur. What Would Be the Best Business to Buy?
Buying a business you know little about means you will have to struggle with a huge learning curve that could be costly to the business. For example, if you have gotten training at a culinary school perhaps you should be looking for a comfort food eatery to buy. If you have training in graphic design then, perhaps, you should be looking for a graphic design store to buy. The best advice is to look for something you have passion for, a connection to, a function that is more like play then work.
A business that has been established and shown a profit for many years. Current Company If you are working for an established small company and you love the work perhaps you should consider making an offer to the owner to see if it floats? You may already know all the ins and outs of how things are done and this could be a good fit for you. You may already know the employees, who loves the business and who is just getting by, the ones that will help you get a leg up on the business, and the ones that should be looking for other employment.
Explore Other Avenues Check out the classified in the local paper, ads for buying a business for sale online, trade association ads, real estate brokers, and business suppliers. If you can find a decent legit business broker, businessmen who make a commission from small business that need help locating buyers, it is perfectly fine to use their service to look for a business opportunity that will work for you.
Another avenue to pursue would be to search out small towns that have small restaurants for sale that are only open for breakfast and lunch. Farmers, town folks that work in town, passing through vendors, on the road salesmen, just about anyone who travels the small town beat is a potential customer. Plus if the food is good the word gets around and you will have repeat customers.
The upside is you only work from 5:00 am till 2:00 pm the rest of the day is yours. Closing the Deal If you found something that suits your fancy an agreeable purchase price can be obtained by hiring an experienced appraiser. Coming together on which items you want to buy in the business, like equipment for the business, and then the terms you have agreed to in the payment. A lot of times small businesses are bought on the installment plan with 25% down payments. Hiring a good business lawyer that knows all the proper paperwork that you will need is the perfect solution.